(Bloomberg) – DoorDash Inc., a food retailer, is currently negotiating a $ 500 million fundraising effort by Singapore state-owned investment company Temasek Holdings Pte, a person close to the company said. folder. Although the amount may differ because the details have not been finalized.
An agreement would give DoorDash a value of $ 6 to $ 7 billion, said two people familiar with the details, who both asked not to be identified because the discussions were private. The Wall Street Journal had previously announced the terms of the deal.
DoorDash is increasingly resembling a direct rival for Uber Technologies Inc., as the mobile phone company is increasingly turning to food delivery with its fast-growing service, Uber Eats. Uber is preparing for a public offering this year and is waiting to see if another government shutdown will hinder the preparation of its IPO.
With so many important and well funded players in the industry, the food delivery sector has become increasingly competitive. Competition weighed on GrubHub Inc.'s publicly traded stock, which fell about half from its peak last year. At the same time, Postmates Inc., another food distribution company, has announced that it has confidentially filed a public offer.
While DoorDash's business was booming, the San Francisco-based company was scrutinized for how it pays its drivers. The company takes into account the workers' advice given by the customers when calculating the amount paid by them.
A DoorDash spokesperson did not immediately respond to a request for comment. Temasek refused to comment on the agreement.
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